Are my mortgage payments tax deductible?

In Germany, the interest paid on your mortgage for own-use properties isn’t tax-deductible. However, if you buy an investment property and rent it out as a so-called landlord then you can offset any expenses resulting from generating rental income against your taxable income from rent. This includes mortgage expenses as well as costs for maintenance, improvements and repairs.

The following tax-rates apply:

Taxable income, (€)Tax Rate
Up to 8.652 €0,00 %
8.652 € - 52.881 €14,00 % - 42,00 %
52.881 € - 250.730 €42,00 %
Over 250.730 €45,00 %
Table: Tax rates in Germany based on taxable income

Here is an in-depth article on taxes for residential buyers.

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